Friday, December 23, 2011

Britain blames euro for triple-A warning

09:26

RelatedCameron defends EU veto amid accusations of isolating BritainEU commissioner picks fight with London after UK vetoFrance: Agencies should downgrade 'Greece-like' UK By Andrew Rettman

BRUSSELS - The British government has blamed the euro for ratings agency worries on its triple-A status amid a widening political gap between Brussels and London.

A UK treasury spokesman told newswires on Tuesday (20 December) that exposure to the eurozone is the main reason why Moody's earlier the same day warned that Britain's top-level grade faces "formidable and rising challenges."

The spokesman said: "The UK is not immune to the problems facing our trading partners in the euro area; the crisis is having a chilling effect across Europe and it is important that the euro area continues to take decisive action to fix their problems."

The Moody's report noted "that no EU sovereign rating can be considered immune to this crisis." But it cited internal UK problems as the main cause of concern.

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